Young people push benefit figures higher

The number of people on benefits increased by 10,631 between November and December and the total stands at 352,707, Social Development Minister Paula Bennett said today.

Ms Bennett said unemployment benefit figures remained high at 67,084 - an increase of 4536.

"The unemployment benefit has always increased in the month to December," she said.

"In December 2009 the number of people on the unemployment benefit increased by 7787."

Ms Bennett said more than half the latest increase was driven by young people completing education and training and looking for work.

There were 112,865 people on a domestic purposes benefit at the end of December, 85,105 on an invalid's benefit and 59,988 on a sickness benefit.

A further 27,665 were on a range of other benefits.

Labour's social development spokeswoman, Annette King, said the figures proved the Government had no plan to create jobs.

"The promises (Prime Minister) John Key keeps making about job creation and getting New Zealanders off benefits are now ringing very hollow," she said.

"In Australia, 1000 new jobs were created each day last year - compare that to New Zealand where there are now 67,084 people on an unemployment benefit."

The party's youth affairs spokeswoman, Jacinda Ardern, said it was a worry that many of those signing up for the unemployment benefit were young people who had recently finished training.

"Those signing up for unemployment benefit student hardship grants rose a whopping 130 per cent from November to December," she said.

"These young people are keen to get out there in the workforce but because National is failing to create jobs for them they are being forced to claim a benefit."

- NZPA